Stock Market Correction: 2 Brilliant AI Stocks Down 45% and 48% to Buy Before They Soar, According to Wall Street

Company Overview - AppLovin is an ad tech company that utilizes AI for mobile and connected TV campaigns, and is beta testing a product for e-commerce brands [4] - Datadog is a leader in observability and digital experience monitoring software, providing tools for performance monitoring of critical applications and infrastructure [9] AppLovin Financial Performance - AppLovin reported a 44% increase in revenue to $1.4 billion and a 253$0.49 per diluted share for the fourth quarter [6] - The company’s e-commerce advertising product has reached a billion-dollar run rate within months [6] - Wall Street anticipates a 47% increase in AppLovin's earnings by 2025, making its current valuation of 59 times earnings appear reasonable [8] AppLovin Market Position - AppLovin stock is currently 48% below its record high, with a median target price of $550 per share from analysts, indicating a potential 108$264 [11] Datadog Financial Performance - Datadog's revenue rose 25% to $738 million, with a 10$0.49 per diluted share, although management's full-year guidance disappointed investors [12] Datadog Market Position - Datadog stock is 44% below its record high, with a median target price of $160 per share from analysts, suggesting a 72$93 [11] - The stock currently trades at 12.4 times sales, significantly lower than its three-year average of 18.6 times sales, presenting a buying opportunity for long-term investors [14] Industry Trends - The demand for observability software is expected to grow as cloud computing and AI technologies increase infrastructure complexity [10] - Datadog is focusing on LLM Observability, which is tailored for large language models and generative AI, indicating a strategic alignment with emerging technology trends [10]